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THE PROBLEM
If each sale isn’t profitable, you can’t “make it up with volume”. You need to know that at some point, you can charge more for your product or service than it costs you to build, attract, deliver, delight, and support.
Otherwise, you don’t have a business. You either have a nonprofit or a very expensive hobby.
But how do you decide what to charge?
Pricing is tough in the early stages because you don’t know exactly what will impact your profitability the most.
Have you thought of all the costs? How will they change over time? How much will people actually pay for your product or service?
You’re trying to find the sweet spot between pricing that helps you make a profit while being competitive enough to attract a steady flow of customers.
Reminder: Competitive pricing doesn’t always mean that you’re the cheapest on the market. It means being the best deal associated with the value you provide.
We know that this can be tough to figure out, so we’re here to help.
THE SOLUTION
Inside Fric, we’ve got a feature called Reality Check, which allows you to see where you are right now and make high-level assumptions about what you’re going to charge clients, and how much it’s going to cost you to do all of the essential functions that your business needs.
Once you know what you’ll invest in those areas, Fric shows you right away whether you can make money in that first year.
But then we go further, because we understand what’s happening this year isn’t necessarily what’s going to happen next year.
You can play with what next year, the year after, and the year after that looks like to see at what point you eventually get to a place where your pricing covers all your costs – and more.
That’s your profit, and it’s the lifeblood of your business.
Because ultimately that’s what it’s about. No more guessing at pricing, no more expensive hobbies, just clear insight on whether your numbers actually work.
This Sleepless Founder Series showcases how Fric addresses the issues entrepreneurs face, providing insights and possibilities so you can make confident decisions, take committed action, and chart your own route to success. For more context on these questions, check out this article: https://www.linkedin.com/pulse/messy-questions-every-entrepreneur-carries-rarely-says-stephanie-sims-0lszc/?trackingId=%2BZG87MfvSXJ9mRgyGGR7RA%3D%3D
When you are ready to move from insight to action, Fric helps you build a plan rooted in reality. It connects assumptions, actions, and actual results so you can see what is really driving cash and profit. Start a free two-week trial and explore Fric at your own pace.
Stephanie Sims is a recovering investment banker, two-time founder, speaker, venture capitalist, and startup educator who believes every entrepreneur should build a business that makes dollars…and sense. She is also the author of Funding Your Business Without Selling Your Soul. After watching too many promising founders chase funding at the expense of long-term success, she created Fric —an interactive platform that turns your big vision into actionable steps. Fric helps entrepreneurs like you map and navigate the shifting path toward the world you believe should exist. This skill, which Fric calls visionary prowess, equips you to make confident decisions, take committed action, and chart your own route to success.
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